Kodiak Gas Services (NYSE:KGS) Shares Gap Down on Disappointing Earnings

Shares of Kodiak Gas Services, Inc. (NYSE:KGS) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $56.86, but opened at $53.90. Kodiak Gas Services shares last traded at $56.8650, with a volume of 232,646 shares trading hands.

The company reported $0.55 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.12). The company had revenue of $391.12 million for the quarter, compared to analyst estimates of $386.30 million. Kodiak Gas Services had a net margin of 5.13% and a return on equity of 13.12%. Kodiak Gas Services’s revenue was up 21.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.43 earnings per share.

Kodiak Gas Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Monday, August 17th will be issued a dividend of $0.49 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.96 annualized dividend and a yield of 3.4%. Kodiak Gas Services’s payout ratio is currently 264.86%.

Analyst Upgrades and Downgrades

KGS has been the topic of several research reports. Royal Bank Of Canada upped their target price on Kodiak Gas Services from $64.00 to $84.00 and gave the company an “outperform” rating in a report on Monday, May 18th. Zacks Research raised Kodiak Gas Services from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 6th. The Goldman Sachs Group boosted their price objective on shares of Kodiak Gas Services from $69.00 to $88.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Jefferies Financial Group began coverage on shares of Kodiak Gas Services in a research note on Thursday, June 4th. They issued a “buy” rating and a $79.00 price objective on the stock. Finally, Piper Sandler started coverage on shares of Kodiak Gas Services in a report on Tuesday, July 28th. They set an “overweight” rating and a $78.00 target price for the company. Ten investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $79.33.

Insider Buying and Selling

In other news, COO William Chad Lenamon sold 1,000 shares of the company’s stock in a transaction on Monday, July 13th. The stock was sold at an average price of $67.79, for a total value of $67,790.00. Following the sale, the chief operating officer directly owned 87,294 shares in the company, valued at $5,917,660.26. This represents a 1.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Pedro R. Buhigas sold 4,625 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.78, for a total value of $313,482.50. Following the completion of the sale, the insider owned 38,454 shares in the company, valued at $2,606,412.12. This represents a 10.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 13,523 shares of company stock valued at $921,319. 0.64% of the stock is owned by insiders.

Institutional Investors Weigh In On Kodiak Gas Services

Hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada lifted its stake in shares of Kodiak Gas Services by 67.5% during the first quarter. Royal Bank of Canada now owns 10,235 shares of the company’s stock valued at $382,000 after buying an additional 4,126 shares during the period. AQR Capital Management LLC grew its stake in Kodiak Gas Services by 64.9% in the 1st quarter. AQR Capital Management LLC now owns 21,261 shares of the company’s stock worth $793,000 after acquiring an additional 8,369 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Kodiak Gas Services by 44.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,814 shares of the company’s stock valued at $1,000,000 after acquiring an additional 8,297 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Kodiak Gas Services by 58.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,983,360 shares of the company’s stock valued at $73,979,000 after acquiring an additional 730,180 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Kodiak Gas Services by 102.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 95,108 shares of the company’s stock worth $3,548,000 after purchasing an additional 48,122 shares during the last quarter. 24.95% of the stock is currently owned by hedge funds and other institutional investors.

Kodiak Gas Services Stock Up 0.5%

The firm has a market cap of $5.07 billion, a price-to-earnings ratio of 77.21, a PEG ratio of 0.85 and a beta of 0.97. The company has a quick ratio of 0.99, a current ratio of 1.28 and a debt-to-equity ratio of 2.38. The firm has a fifty day moving average price of $66.28 and a 200-day moving average price of $60.90.

About Kodiak Gas Services

Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings.